* Dollar index falls to one-week low
* Back and forth on U.S. aid package weighs on dollar
* U.S. jobless claims better than expected
* Risk-on sentiment, equity rally dollar bearish - analysts
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds new comment, U.S. data, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Aug 13 (Reuters) - The dollar fell to its lowest in a week against a basket of currencies on Thursday, pressured as a safe haven by overall equity market resilience as well as the impasse over additional stimulus for the U.S. economy to cope with the virus pandemic.
After losing 10% of its value from a peak in March, the dollar index has been bouncing around its lowest levels in more than two years since late July.
On Thursday, it traded 0.3% lower at 93.079 =USD , led by losses versus the euro. The single European currency was up 0.5% at $1.1838 EUR=EBS .
At the same time, the S&P 500 .SPX remained within striking distance of a record high, while the Nasdaq .IXIC rose.
Investors remained focused on the stimulus package talks, which broke down last week.
Funding for the U.S. Postal Service and to shore up election infrastructure became a major sticking point in congressional talks on coronavirus relief, as President Donald Trump on Thursday vowed to block any money to facilitate mail-in voting. Wednesday, Trump accused congressional Democrats of not wanting to negotiate over a U.S. coronavirus aid package as Republican and Democratic negotiators traded blame for a five-day lapse in talks over relief legislation. longer wait for Washington to deliver another round of pandemic relief has caused dollar-negative clouds to gather over the economy," said Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington.
Analysts also noted recent equity market resilience has worked against the dollar.
"The S&P500 briefly touched record highs yesterday, confirming the ability of equities to quickly shrug off negative drivers to sentiment," said Francesco Pesole, FX strategist at ING. "This remains a key point in favor of the dollar-bearish argument."
The dollar though shrugged off better-than-expected U.S. jobless claims data.
Initial claims for state unemployment benefits decreased 228,000 to a seasonally adjusted 963,000 for the week ended Aug. 8. That was the lowest level since mid-March when authorities started shutting down non-essential business to slow the spread of the novel coronavirus. Economists polled by Reuters had forecast 1.12 million applications in the latest week. Japanese yen recouped some of its losses from the previous day, against the dollar, which was last down 0.1% at 106.78.
The British pound GBP=D3 rose 0.7% against the dollar to $1.3101.
"I think the market is going through a consolidative phase for the dollar," said Vassili Serebriakov, currency strategist, at UBS in New York, adding that the dollar's bearish trend remained well-entrenched.
The onshore yuan CNY=CFXS briefly rose to a five-month high before steadying at 6.9421 per dollar. U.S. and Chinese officials meet Saturday to review their Phase I trade deal.
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Currency bid prices at 11:02AM (1502 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Euro/Dollar
EUR=
$1.1832
$1.1782
+0.42%
+5.55%
+1.1864
+1.1782 Dollar/Yen
106.8800
106.8900
-0.01%
-1.82%
+106.9900 +106.5700 Euro/Yen
EURJPY=
126.47
125.97
+0.40%
+3.71%
+126.7400 +125.9200 Dollar/Swiss
CHF=
0.9099
0.9120
-0.23%
-5.98%
+0.9133
+0.9083 Sterling/Dollar GBP=
1.3088
1.3032
+0.43%
-1.29%
+1.3123
+1.3032 Dollar/Canadian CAD=
1.3208
1.3244
-0.27%
+1.74%
+1.3256
+1.3192 Australian/Doll AUD=
0.7172
0.7162
+0.14%
+2.15%
+0.7187
+0.7157 ar
Euro/Swiss
EURCHF=
1.0768
1.0745
+0.21%
-0.77%
+1.0790
+1.0747 Euro/Sterling
EURGBP=
0.9039
0.9039
+0.00%
+6.92%
+0.9052
+0.9031 NZ
NZD=
0.6566
0.6577
-0.17%
-2.52%
+0.6598
+0.6555 Dollar/Dollar
Dollar/Norway
8.8713
8.9404
-0.77%
+1.06%
+8.9586
+8.8548 Euro/Norway
EURNOK=
10.5003
10.5470
-0.44%
+6.73%
+10.5630
+10.4923 Dollar/Sweden
SEK=
8.6750
8.6788
+0.26%
-7.19%
+8.6972
+8.6529 Euro/Sweden
EURSEK=
10.2655
10.2391
+0.26%
-1.95%
+10.2800
+10.2375